How many times has Google
That’s something that Microsoft
The company has even paid for product placement in TV shows before, having actors say "Bing it" to settle something. Sony’s
Bing exec Adam Sohn told Fast Company, "We don't have an explicit strategy to go chase the verbiness. We don't have that as a goal -- like we're not spending money [on it]. We've never tried to verb it." Bing’s new ad campaign may beg to differ, because it is titled "Bing It On." I may not be a grammarian (not even as a side gig), but I’m fairly certain "Bing" isn’t being used as a noun, pronoun, adjective, adverb, or preposition in that phrase.
According to the report, not even Microsoft employees say "Bing it" frequently. It happens, sometimes, but it’s "rare." With Google simply being synonymous with search nowadays, Sohn would ultimately be "happy if someone said 'Google it' but they were going to Bing and give us the query."
Microsoft is ramping up its efforts to challenge Google’s hegemony, even inking a deal with Amazon.com
A deep red hole
The most relevant question for investors about Bing is whether or not the initiative will ever become a profitable endeavor. Bing was launched in June 2009, and its operating results are included in the software giant’s online services division, or OSD. Here’s how that segment’s operating income has looked ever since.
Source: SEC filings. Calendar quarters.
Of course, last quarter’s enormous loss was primarily the result of a $6.2 billion goodwill impairment related to the failed acquisition of aQuantive in 2007, which Mr. Softy had high hopes for, as it was building its budding online advertising business.
The OSD has generated operating losses of $13.8 billion since then. That’s more than the size of entire companies, yet Microsoft has blown it trying to compete with Google. That’s a mighty deep hole for Bing and the OSD to try to dig itself out of. But then, again, Microsoft has never been averse to throwing good money after bad.
It wasn’t until 2007 that the company’s entertainment and devices division, or EDD, was able to begin consistently generating black ink, and even that business is still cumulatively in the red over the past eight years, and the OSD’s red hole is far deeper.
Microsoft should have stuck with its core cash cows, and investors would be much better off. The good news is that those core segments remain as strong as ever. One of The Motley Fool’s top analysts has put together a comprehensive report on Microsoft. Grab your copy today and get free updates included.
Fool contributor Evan Niu sometimes wishes he was a grammarian. He owns shares of Apple, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Apple, Microsoft, and Amazon.com. Motley Fool newsletter services have recommended buying shares of Apple, Microsoft, Amazon.com, and Google. Motley Fool newsletter services have recommended creating a synthetic covered call position in Microsoft. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
More from The Motley Fool
Microsoft Earnings: Will Strong Growth Persist?
Can strong growth in cloud services and Office 365 help revenue rise nicely in Q2?
2 Great Stocks You Can Buy and Hold Forever
Both of these stocks have positioned themselves for nearly limitless growth potential long into the future.
2 No-Brainer Stocks to Buy in Tech
For investors in search of reliable, steady growth and maybe a bit of income, these two stocks look like slam-dunks.